
The rise of the personal computer and the large number of jobs lost during the recession drove many Americans to set up shop in their homes. Today, the
U.S. Small Business Administration reports that home-based businesses now account for half of all businesses in the United States.
Yet many new home-based business owners forget to buy one very important thing: insurance.
A 2004 study commissioned by the
Independent Insurance Agents & Brokers of America revealed that nearly 60 percent of home-based business owners didn’t have enough insurance to protect their businesses.
“When people are working out of their house, they think ‘Well, I have homeowners coverage,” says Terry McConnell, vice president, Personal Lines Underwriting. “But the homeowners policy hardly ever covers the business.”
What homeowners policies don’t cover
Many—though not all—homepreneurs need extra protection beyond their homeowners policies. That’s because most homeowners policies lack these important coverages:
Business personal property
Most homeowners policies provide limited coverage of $500 to $1,000 for tools, machines or other equipment you use exclusively for your business.…
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